Oil today: oil grows on data about decrease in production
On Friday, oil quotations are traded with restrained growth after a decline at the beginning of the day. The recoveryof the cost of oil was caused by the data on the reduction of the global proposal according to the version of the International Energy Agency (IEA). So, the IEA report that was published today pointed to a significant reduction in oil production in Venezuela and compliance with the OPEC agreement on oil production limitation. As a result, oil quotes were supported on the expectation of a reduction in supply.
Also, the IEA report reported an increase in the forecast for production growth in the US, Canada and Brazil, which in the future could completely cover the existing deficit and put pressure on oil. Despite the fact that oil quotes remain near annual highs. Further increase in oil production in the US is the main threat to the safety of the upward trend in oil.
Recommended for reading: Technical Analysis
- The nearest resistance levels: for WTI – 64.00 and 64.50 $ per barrel, for Brent – 69.50 and 70.00 $ for barrel.
- Support levels are: for WTI – 63.40 and 63.00 $ per barrel, for Brent – 68.50 and 68.00 $ per barrel.
WTI chart, current price – $ 63.70
Brent chart, current price – 69.00 $
Hanzenko Anton